Monday, January 08, 2007

I feel so validated

I just learned that the blog Marketing Matters linked up to the rant polemic I wrote last month about the evils of discounting your brand.

Plus, Jason there does an excellent job of reinforcing my thesis with an example of how commodotization of insurance policies has harmed the insurance industry:

Look at the life insurance industry. Low-cost life insurance providers have spent the last decade cutting each others' throats, slashing term insurance premiums down to next to nothing. The original idea was to sell term insurance at a barely break even level - and then go in to convert them to whole life and other permanent insurance products, and make money off the relationship initiated when the customer bought 400,000 worth of term insurance for 20 cents per year or something stupid like that.Well, now that he's got 400k of term insurance, he's not in a hurry to convert to permanent. And the term industry now has millions of clients they don't want to keep!

If anybody out there can give me concrete examples of industries where whoring yourself out has grown your profits, I'm all ears.

So far, I've enjoyed all the blog entries of theirs that I have read. I look forward to more from them!

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